Road Accident Fund in Crisis: Landmark SCA Rulings, R500bn Liability & What It Means for Claimants (May 2026)

The Road Accident Fund (RAF) is facing the most turbulent period in its history. A series of landmark Supreme Court of Appeal (SCA) rulings, a looming financial crisis estimated at over R500 billion, and intense parliamentary scrutiny have placed South Africa’s state-owned road accident compensation entity firmly in the spotlight. Here is a comprehensive roundup of the latest RAF news as of May 2026.

1. Supreme Court Declares RAF’s 2022 Claim Form Unlawful

In a unanimous judgment handed down on 30 April 2026, the Supreme Court of Appeal dismissed the RAF’s appeal and declared key changes to its claims process unlawful. The ruling confirmed that both the RAF and the Minister of Transport acted outside their legal powers when introducing stricter requirements to the RAF1 claim form — the mandatory gateway for compensation claims.

The RAF had amended the form in 2022 to require “substantial compliance,” demanding significantly more information and documentation, including specialised reports. If a claimant failed to provide all compulsory information at the lodgement stage, the claim would not be registered or allocated a claim number.

The court found that these additional administrative hurdles made it harder for victims to access compensation, undermining the very purpose of the RAF Act — to support road accident victims.

Key outcomes of the ruling:

• The RAF must revert to the older 2008 claim form, which the court reaffirmed as the valid standard.
• Claimants whose submissions were previously rejected must be allowed to re-lodge their claims by 30 September 2026.
• The Minister of Transport has been given six months to introduce a revised claims process that complies with legal and procedural requirements.
• Thousands of claims that were rejected under the unlawful requirements may now need to be re-lodged, effectively restarting the process.

According to Kirstie Haslam, Partner at DSC Attorneys: “This is a significant legal victory for claimants, but it creates a complex and potentially chaotic situation on the ground. Many claims that were rejected under the unlawful requirements may now need to be re-lodged, effectively restarting the process.”

2. R180 Billion Claims Floodgates: The Financial Fallout

The SCA ruling has sent shockwaves through South Africa’s public finances. ActionSA MP Alan Beesley has warned that approximately 600,000 claims were rejected as a result of the unlawful 2022 RAF1 form, at an average value of R300,000 per claim. This creates a potential liability of at least R180 billion that has not been accounted for in the national budget.

This comes on top of the RAF’s already strained financial position. The fund is understood to have unrecorded liabilities of approximately R300 billion, linked to incorrect accounting policy changes. Combined, total obligations could exceed R500 billion — surpassing the financial burdens posed by entities such as Eskom and Transnet.

ActionSA has written to Finance Minister Enoch Godongwana requesting an urgent briefing before Parliament, and the party is exploring all available legal avenues, including the potential for criminal charges against those responsible for introducing the unlawful form.

“These are effectively state liabilities and place the national fiscus in an extremely vulnerable position, exceeding the financial burdens posed by entities such as Eskom and Transnet.” — ActionSA MP Alan Beesley

3. SCOPA Warns of Severe Financial Consequences

Parliament’s Standing Committee on Public Accounts (SCOPA) has also sounded the alarm. In its draft report following an extensive inquiry into the RAF’s affairs, SCOPA warned that the fund may face a massive influx of claims should it be unsuccessful in defending the claim form in court — a scenario that has now materialised.

SCOPA Chairperson Songezo Zibi noted that the National Treasury has estimated the RAF’s total liability at more than R400 billion. The committee found that:

• The 2022 RAF1 Form made the claims process largely inaccessible, being complex, costly, and available only in English.
• The form effectively prevented direct claims without the assistance of attorneys.
• There was no evidence that the board properly interrogated executive management on the legality of the changes.
• Former board members appeared to have “rubber-stamped” decisions taken by executive management.

DA MP Patrick Atkinson called for findings against the former board and former CEO Collins Letsoalo, under whom the change in the claim form was made: “They created this liability to grow when it should not have. What they have done has the potential to break the organisation.”

4. SCA Rules RAF Must Compensate Undocumented Foreign Nationals

In a separate but equally significant ruling in April 2026, the SCA ruled that the RAF cannot refuse to pay compensation to people even if they are in South Africa illegally. The court dismissed two appeals by the RAF concerning section 17(1) of the RAF Act, which uses the phrase “any person” — language the court confirmed does not exclude foreign nationals, regardless of immigration status.

The ruling came after the RAF’s COO issued a management directive in June 2022 requiring proof of legal status for foreign claimants, and the Transport Minister published a new claim form in July 2022 requiring the same. The SCA found these measures unlawful.

Judge of Appeal Ashton Schippers stated in the unanimous judgment: “Unlike other legislation which specifically excludes foreign nationals from its ambit, such as the Social Assistance Act which limits beneficiaries to South African citizens, permanent residents and refugees, the [RAF] Act contains no such limitation.”

This ruling is expected to significantly expand the pool of eligible claimants and add further pressure to the RAF’s already strained finances.

5. RAF Cannot Benefit From Its Own Delays: Courts Dismiss Special Plea

In another legal setback, the RAF suffered a defeat in the matter of Cele v Road Accident Fund [2026] ZAMPMBHC 2 (21 January 2026), where the RAF raised a special plea arguing that a claimant’s case had prescribed. The court dismissed the plea, finding that the RAF cannot benefit from its own delays in processing claims.

This ruling reinforces a growing judicial trend of courts holding the RAF accountable for systemic failures that disadvantage claimants.

6. What Does This Mean for RAF Claimants?

If you were previously unable to lodge a claim with the RAF due to the stricter 2022 form requirements, here is what you need to know:

• ✅ You may be eligible to re-lodge your claim using the older 2008 RAF1 form.
• ⏰ The deadline to re-lodge is 30 September 2026 — act quickly to protect your rights.
• ⚖ Seek legal advice from a qualified attorney who specialises in RAF claims to understand your options.
• 📋 Gather your documentation: accident details, medical reports, and supporting evidence of loss or damage.
• 🌎 Foreign nationals — including undocumented individuals — are now confirmed to be eligible to claim from the RAF.

Legal experts caution that while the judgment restores legal clarity, it places additional strain on an already overburdened system. Delays are expected, and claimants should act promptly to avoid further complications.

7. The Road Ahead: Bailout, Reform, or Collapse?

With total liabilities potentially exceeding R500 billion, analysts and politicians are increasingly asking whether the RAF will require a major government bailout. The fund does not have the administrative capacity to register, process, and investigate the anticipated influx of claims, which could overwhelm an institution already struggling to manage its existing caseload.

Delays are expected to lead to more litigation, which could further increase costs. With limited resources to defend cases, the RAF faces the risk of default judgements, potentially driving up payouts significantly.

The Minister of Transport has six months to introduce a revised, lawful claims process. How quickly and effectively the RAF and the Department of Transport respond will determine whether the fund can stabilise — or whether South Africa faces its next major state-owned enterprise crisis.

Key Takeaways

Stay informed about the latest Road Accident Fund news and updates by bookmarking this page. If you believe you have a valid RAF claim, consult a qualified legal professional as soon as possible.

Sources: IOL, Road Safety Blog (Arrive Alive), Sunday World, EWN (Eyewitness News), Business Day, Currency News, Daily Maverick, Webber Wentzel.